Has anyone found 70% deals in San Antonio?

I've been looking for SFR that meet the 70% ARV minus repairs in San Antonio but have not had much luck. Is this something that is not going to work in this seller's market? Should I raise my maximum purchase price? I've been looking for about 5 months and have gotten offers rejected when I try to use this formula. Any guidance will be appreciated!

I buy sub 70% deals from time to time, but 70% is no longer the norm in San Antonio. As the retail market has improved so has the distressed asset market. I am typically seeing deals in the 73% - 75% range and sometimes as high as 80%. This has caused a shift in buying trending to high acquisition price because even at a higher percentage there is still a good enough spread to make the deal worth it. I tell my clients all the time, if you have the means, invest in buy-and-hold properties. It's still a better return that the market, and it's passive income. Otherwise, flip higher end homes, and make sure you have the capital to deal with the holding costs.

@Seth Teel Yes, I've been seeing deals from 73%-80% as well. You mentioned that you tell your clients all the time that if they have the means, to invest in buy-and-hold properties. Does your recommendation change depending on the market? For example, in the current market, is it better to buy and hold? When, if ever, do you recommend flipping, or other strategies? I am working on my second buy and hold deal, but it was closer to 75%.

@Joe Gore Joe, excuse the question, but aren't all REO's on the market? I'm still new and thought that all the REO's were on the MLS since banks wanted to get rid of them ASAP. Also, you said that I would get rejected with the 70% rule, is that something that is happening just because of the current market or is that something that just doesn't work here in San Antonio at all?

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